Ryanair lifts profits but takes €25 million hit from flight cancellation fiasco

Budget airline Ryanair has suffered a €25 million blow in the wake of its flight cancellation fiasco, but has still bolstered half-year profits by 11%.

Ryanair lifts profits but takes €25 million hit from flight cancellation fiasco

Budget airline Ryanair has suffered a €25 million blow in the wake of its flight cancellation fiasco, but has still bolstered half-year profits by 11%.

The Irish firm said costs in its "sales, marketing and other" bracket leapt 30%, as it dished out compensation after around 700,000 customers were disrupted by cancelled flights stretching from September to October.

The low-cost carrier has come under fire after cancelling around 20,000 flights in the autumn due to an error over pilot holiday rosters.

Despite the hit, pre-tax profits climbed to €1.293 billion for the six months ending in September, up from €1.168 billion over the period last year.

The jump was driven by a strong Easter period, helping bolster customer numbers by 11% to 72.1 million.

Revenues also picked up 7% to €4.425 billion, as it added 80 new routes and drove down air fares by 5%.

Chief executive Michael O'Leary said: "These strong H1 results reinforce the robust nature of Ryanair's low fare, pan-European growth model, even during a period which suffered a material failure in our pilot rostering function in early September.

"Prior to this event, we were on track to deliver strong H1 results during which we opened three new bases and 80 new routes.

"We took delivery of 35 new B737s in the first six months of 2017, we stimulated 11% traffic growth with 5% lower airfares, and achieved an industry record load factor of 97% in the peak summer months."

more courts articles

Man (25) in court charged with murdering his father and attempted murder of mother Man (25) in court charged with murdering his father and attempted murder of mother
Man appears in court charged with false imprisonment of woman in van Man appears in court charged with false imprisonment of woman in van
Man in court over alleged false imprisonment of woman Man in court over alleged false imprisonment of woman

More in this section

FILE PHOTO The Competition and Consumer Protection Commission has cleared the purchase of Goodbody Stockbrokers by AIB END Goodbody Stockbrokers fined over €1.2m by Central Bank over rules breaches
Nottingham City Centre Stock Irish staff at the Body Shop wait for wages as retailer shuts stores in the Republic
Ryanair comments on Norwegian Ryanair boss O'Leary's spat with Transport Minister over Dublin Airport escalates
IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
ie logo
Puzzles Logo

Play digital puzzles like crosswords, sudoku and a variety of word games including the popular Word Wheel

Lunchtime News
Newsletter

Keep up with the stories of the day with our lunchtime news wrap.

Sign up
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited